TSYS CARD TECH LIMITED,UNITED KINGDOM vs. DCIT CIRCLE 3(1)(1) INTL. TAXATION, NEW DELHI

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ITA 2126/DEL/2023Status: DisposedITAT Delhi03 January 2025AY 2020-21Bench: SHRI VIKAS AWASTHY (Judicial Member), SHRI BRAJESH KUMAR SINGH (Accountant Member)3 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the reassessment notice was issued in the name of the erstwhile company which had ceased to exist due to amalgamation. The Tribunal found that the assessee had duly informed the authorities about the cessation of the erstwhile company. Therefore, the notice issued to a non-existent entity was vitiated. The Tribunal placed reliance on the decision of the Hon'ble Delhi High Court in Sky Light Hospitality LLP vs. ACIT, which held that such a notice on a non-existent entity is vitiated. Consequently, the Tribunal found no reason to interfere with the findings of the Ld. CIT(A). The appeal filed by the Revenue was dismissed.

What were the facts?

The assessee, M/s IGT Solution Private Ltd., is engaged in Information Technology Enabled Services. The erstwhile company, I.G.T. Solutions Private Limited, engaged in IT software solutions and BPO services, amalgamated with Interglobe Technologies Private Limited effective April 1, 2017, as per an NCLT order dated April 12, 2018. The resultant company changed its name to IGT Solutions Private Limited. This fact was intimated to the ACIT, Circle 12(2), Delhi, on August 26, 2019. The assessment order for Assessment Year 2017-18 was passed by the ACIT, Circle 12(2), Delhi, on December 29, 2019, under Section 143(3) of the Income Tax Act, 1961. The assessee appealed to the CIT(A), NFAC, Delhi, who passed an order on January 20, 2025. The Revenue has appealed this order to the ITAT.

What were the issues?

1. Whether the reassessment notice issued in the name of the erstwhile company, which had ceased to exist due to amalgamation, is valid, thereby vitiating the assessment proceedings. (Question of law and fact, concerning the validity of notice and assessment proceedings). Assessee's Contention: The assessee argued that the reassessment notice was issued in the name of a non-existent entity after amalgamation and that such a notice is vitiated, relying on the decision of the Hon'ble Delhi High Court in Sky Light Hospitality LLP vs. ACIT (2018). Revenue's Contention: The Revenue contended that the Ld. CIT(A) followed the decision of the Hon'ble Supreme Court in PCIT v. Maruti Suzuki India Ltd [2019] and failed to consider the subsequent decision in PCIT (Central) v. Mahagun Realtors (P) Ltd. [2022].

Which sections of the Income-tax Act were involved?

Section 143(3)

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Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, DELHI BENCHES : G: NEW DELHI

Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL

For Appellant: Ms Priya Tandon, Advocate
For Respondent: Shri Mahesh Kumar, CIT-DR
Hearing: 15.09.2025Pronounced: 30.10.2025
1.

This is an appeal preferred by the assessee against the order dated 20.01.2025 of the Commissioner of Income-tax (Appeals), NFAC, Delhi (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in appeal No.CIT(A), Delhi-4/10854/2019-20 arising out of the appeal before it against the order dated 29.12.2019 passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) by the ACIT, Circle 12(2), Delhi (hereinafter referred to as the Ld. AO).

2.

On hearing both the sides, we find that The Assessee, IGT Solutions Private Limited was incorporated on incorporated on 19 November 1998 under the provisions of Companies Act, 1956 as a private limited company and is engaged in the business of rendering Information Technology Enabled Services, namely business process outsourcing, data processing and software development etc. The erstwhile company, I.G.T. Solutions Private Limited was incorporated on 3 March 1999 under the provisions of Companies Act, 1956 as a private limited company and is engaged in the business of providing Information Technology Software Solutions and BPO outsourcing services to the travel industry.

3.

The erstwhile company, I.G.T. Solutions Private Limited was amalgamated with Interglobe Technologies Private Limited with effect from 1 st April 2017 vide NCLT order dated 12th April 2018. Subsequently, the resultant company, Interglobe Technologies Private Limited, changed its name to IGT Solutions Private Limited vide ROC order dated 19th February 2019. The said fact was duly intimated to the Assistant Commissioner of Income Tax, Circle 12(2), Delhi vide submission dated 26th August 2019. 3. The grounds which have been raised by the Revenue are on the basis that the ld.CIT has followed the decision of the Hon’ble Supreme Court in the case of PCIT v. Maruti Suzuki India Ltd [2019]107 taxmann.com 375 (SC) and there

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